The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F E D E R A L R E S E R V E BA N K O F N E W Y O R K Fiscal Agent of the United States r Circular N o. 4 7 3 2 1 L M ay 1, 1959 J Offering of $1,500,000,000 of 221-Day Treasury Bills To Be Designated “ Tax Anticipation Series” Dated May 15, 1959 Maturing Decem ber 22, 1959 l o A ll Incorporated B anks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text o f a notice issued by the Treasury Department, released for publication A pril 30, 1959: T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, invites tenders fo r $1,500,000,000, or thereabouts, o f 221-day T rea su ry bills, to be issued o n a discou n t basis under com p etitiv e and n o n co m p e titiv e b id d in g as h ereinafter provided . T h e bills o f this series w ill be design ated T a x A n ticip a tion Series, th ey w ill be dated M a y 15, 1959, and th ey w ill m ature D e ce m b e r 22, 1959. T h e y w ill be a cce p te d at face value in paym ent o f in com e and profits taxes due on D e ce m b e r 15, 1959, and to the exten t they are n ot p resen ted fo r this pu rpose the face a m ou n t o f these bills w ill be p ayable w ith ou t interest at m aturity. T a x p a y e rs d esirin g t o a p p ly these bills in paym ent o f D e ce m b e r 15, 1959, in co m e and profits ta xes have the p rivilege o f su rren d erin g them to any F ed era l R e serve B ank or B ran ch o r to the O ffice o f the T re a s u re r o f the U n ited States, W a sh in g ton , n ot m ore than fifteen days b e fo re D e ce m b e r 15, 1959, and receiv in g receip ts th e re fo r s h o w in g the face a m ou n t o f the bills s o sur ren dered. T h e s e receip ts m ay be subm itted in lieu o f the bills on o r b e fo re D e ce m b e r 15, 1959, to the D is trict D ir e c to r o f In tern al R even u e fo r the D istrict in w h ich such taxes are p a y able. T h e bills w ill be issued in bearer fo r m on ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity va lu e). T e n d e rs w ill be re ce iv ed at Federal R eserve B anks and B ran ches up to the clo s in g hour, on e-th irty o ’ c lo c k p.m ., E a st ern D a y lig h t S a v in g tim e, T h u rsd a y, M a y 7, 1959. T h e tenders w ill n o t be re ce iv e d at the T rea su ry D epa rtm en t, W a sh in g ton . E a ch ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f co m p etitive ten ders the price offered m u st be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F ra ctio n s m a y n ot be used. It is u rg ed that tenders be m ade on the printed form s and forw a rd ed in the special en v e lo p e s w h ich w ill be supplied b y F ed eral R eserve Banks or B ra n ch es o n a pp lication th erefor. O th e rs than b a n k in g institutions w ill n ot be perm itted to subm it tenders e x ce p t fo r their ow n a ccou nt. T en d ers w ill be receiv ed w ith ou t dep osit from in corp ora ted banks and trust com p a n ies and fr o m respon sib le and re co g n iz e d dealers in in vestm ent securities. T e n d ers fro m oth ers m u st be a c c o m panied b y pa ym en t o f 2 percen t o f the face a m ou n t o f T rea su ry bills a pp lied for, unless the tenders are a ccom p a n ied b y an express gu a ra n ty o f paym ent b y an in corp ora ted bank or trust com p a n y . A ll bidders are req u ired to a gree n ot to purchase or to sell, o r to m ake any agreem en ts w ith resp ect to the pu rch ase or sale or oth er d isp osition o f a n y bills o f this issue, until after o n e-th irty o ’ c lo ck p.m ., E astern D a y lig h t S a v in g tim e, T h u rs day, M a y 7, 1959. Im m ed ia tely after the clo s in g h our, ten ders w ill be open ed at the F ed era l R eserve B anks and B ra n ch es, fo llo w in g w hich pu blic an n ou n cem en t w ill be m ade b y the T r e a s u ry D epa rtm en t of_ the a m ou n t and price range o f a ccep ted bids. T h o s e su b m ittin g tenders w ill be advised o f the a ccep ta n ce or rejection thereof. T h e S ecreta ry o f the T rea su ry e x p ressly reserves the righ t to a ccep t o r re je ct any or all tenders, in w h ole o r in part, and his a ction in a n y such resp ect shall b e final. S u b je ct to these reservations, n on com p etitiv e ten ders for $400,000 o r less w ith ou t stated price fro m any on e b idd er w ill be a ccep te d in full at the average price (in three decim a ls) o f a ccep ted c o m petitive bids. P a y m en t o f a ccep ted ten ders at the p rices offered m u st be m ade or com p le te d at the F ed era l R es e rv e B ank in cash or oth er im m ediately available fu n ds on M a y 15, 1959. T h e in com e derived fr o m T rea su ry b ills, w hether interest or gain fr o m th e sale or oth er d isp osition o f the bills, d oes not have a n y exem p tion , as such, and lo s s fr o m th e sale o r oth er d isp osition o f T rea su ry bills d oes n o t have a n y special treat m ent, as such, under the In tern al R even u e C o d e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r oth er excise taxes, w h eth er F ed eral o r State, but are ex em p t fr o m all taxa tion n o w o r h erea fter im p osed o n the principal o r interest th ereof b y a n y State, o r a n y o f the p ossession s o f the U nited States, o r b y a n y lo ca l ta x in g authority. F o r pu rposes o f taxation the a m ou n t o f d iscou n t at w h ich T r e a s u ry bills are o rig in a lly sold b y the U n ited States is con sid ered t o b e interest. U n der S ection s 4 5 4 (b ) and 1221(5) o f the In tern a l R even ue C od e o f 1954 the a m ou n t o f d iscou n t at w h ich bills issued hereun der are s o ld is n ot con sid ered to a ccru e u ntil su ch bills are sold, red eem ed or oth erw ise disp osed of, and such bills are exclu d ed fr o m con sidera tion as capital assets. A c c o r d in g ly , the o w n e r o f T rea su ry bills (oth er than life in su rance c o m pan ies) issued hereunder need in clude in his in co m e ta x return on ly the differen ce betw een the price paid fo r su ch bills, w hether on origin a l issue o r on subsequent pu rch ase, and the a m ou n t actu a lly receiv ed either u p on sale o r red em p tion at m aturity d u rin g the taxable year for w h ich the return is m ade, as ord in a ry gain or loss. T r e a s u ry D ep a rtm en t C ircu lar N o . 418, R evised , and this notice, prescrib e the term s o f the T rea su ry bills and g o v e rn the con d ition s o f their issue. C opies o f the circular m a y be ob ta in ed fro m a n y F ed eral R eserve B ank or B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Thursday, May 7, 1959, at the Securities Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in the enclosed blue envelope marked “ Tender for Treasury Bills— Tax Anticipation Series.” Y ou are cautioned not to enclose a tender for tax anticipation Treasury bills in the yellow envelope marked "T en d er for Special Treasury Bills.” Tenders may be submitted by telegraph, subject to written con firmation; they may not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury T a x and Loan A ccou n t; settlement must be made in cash or other immediately available funds. A lfred H a y e s , President. (O V E R ) No. TEN D ER F O R 221-D A Y T R E A S U R Y BILLS TO BE D E SIG N A TE D “ T A X A N T IC IP A T IO N SERIES ’ Dated May 15, 1959 To F ed era l R eserve B an k o f N ew Maturing Decem ber 22, 1959 Y ork , Fiscal Agent of the United States. Dated at ........................................................ ................................................................ 1959 Pursuant to the provisions of Treasury Department Circular N o. 418, Revised, and to the provisions of the public notice issued by the Treasury’ Department and printed on the reverse side o f this tender, the under signed hereby offers to purchase the above described Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated b elow : C O M P E T IT IV E TE N D E R [ D o not fill in both Competitive and N on com pttitive tenders on on* form $ ............................................................ (maturity value), or any lesser amount that may be awarded. P r i c e : .....................................per 100. (Price must be expressed with not m ore than three decimal places, for example, 99.925) ] N O N C O M PE TITIV E TE N D E R $ ............................................................ (maturity value). (N ot to exceed $400000 for otic bidder through all sources) A t the average price of accepted competitive bids. Subject to allotment, payment for these bills will be made at your Bank on May 15, 1959, by cash or other immediately available fund9. W e hereby agree not to buy or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this issue, until after one-thirty o’clock p.m., Eastern Daylight Saving time, Thursday, M ay 7,1959. Name o f subscriber Insert this tender in blue envelope marked t4T ender for Treasury Bills — Tax Anticipation Series” _ (Please print) By .............................. By (Official signature(s) required) T itle ................................................................................ Title .................. Address ............................................................................................................................. (Banks submitting tenders for customer account must indicate name on line below, or attach a list) (N am e o f custom er) (A ddress) (Note. Successful bidders will receive a letter of instructions form with their allotment notice to instruct us as to the disposition and method of payment of the bills allotted to them.) INSTRUCTIONS: 1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). 2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banks submitting tenders for customer account may consolidate competitive tenders at the same Price and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished on request. 3. I f the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ .................................................................................................. . a copartnership, by ............................. ................................................................................... a member of the firm.” 4. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent bf the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 5. I f the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded.
@FedFRASER